The Federal Maritime Commission (FMC) was established as an independent regulatory agency by Reorganization Plan No. 7, effective August 12, 1961.  Prior to that time, the Federal Maritime Board was responsible for both the regulation of ocean commerce and the promotion of the United States Merchant Marine.  Under the reorganization plan, the shipping laws of the U.S. were separated into two categories: regulatory and promotional.  The newly created FMC was charged with the administration of the regulatory provisions of the shipping laws.

• Regulates certain activities of international shipping lines (called "ocean common   carriers"), marine terminals operators, and ocean transportation intermediaries (OTIs) who operate in the U.S. foreign commerce

• Oversees the financial responsibility of cruise ship lines and other passenger ship operators, to ensure they have the resources to pay compensation for personal injuries or non-performance

• Monitors the laws and practices of foreign governments which could have a discriminatory or otherwise adverse impact on the U.S. shipping industry and U.S. maritime trade, and administers bilateral trade sanctions to persuade foreign governments to remove adverse conditions

The Federal Maritime Commission:

• Monitors activities of ocean common carriers, marine terminal operators, conferences, ports, and ocean transportation intermediaries (OTIs) who operate in the U.S. foreign commerce to ensure they maintain just and reasonable practices, and oversees the financial responsibility of passenger vessel operators.

• Maintains a trade monitoring and enforcement program designed to assist regulated entities in achieving compliance, and to detect and appropriately remedy malpractices and violations set forth in section 10 of the Shipping Act.

• Monitors the laws and practices of foreign governments which could have a discriminatory or otherwise adverse impact on shipping conditions in the U.S.

• Enforces special regulatory requirements applicable to shipping lines owned or controlled by foreign governments (so-called “controlled carriers”)

• Reviews and regulates agreements between shipping lines and/or marine terminals (which enjoy statutory immunity from the antitrust laws) and service contracts between shipping lines and their customers

• Licenses and regulates ocean transportation intermediaries in the U.S., and ensures all maintain evidence of financial responsibility. These intermediaries include freight forwarders, who make bookings and process paperwork for shipper customers (roughly analogous to a travel agent for freight), and "non-vessel-operating common carriers", who act as resellers of space on shipping lines' vessels.

• Ensures passenger vessel operators demonstrate adequate financial responsibility for casualty and non-performance.

The principle statutes or statutory provisions administered by the Commission are: the Shipping Act of 1984, the Foreign Shipping Practices Act of 1988, section 19 of the Merchant Marine Act, 1920, and Public Law 89-777.  Most of these statutes were amended by the Ocean Shipping Reform Act of 1998, which took effect on May 1, 1999.

For more information check the FMC site at: http://www.fmc.gov/